FX Watch: GBP/NZD and GBP/JPY Breakdown Setups If the BOE Turns Extra Dovish

Markets appear to have priced in strong odds of a 0.25% rate cut from the BOE, but what if the central bank hints at even more easing to come?

Our Event Guide for the BOE Policy Decision points out that majority of economic indicators have surprised to the downside and that MPC members are also concerned about public debt issues stemming from elevated borrowing costs.

Here are potential GBP/NZD and GBP/JPY breakouts I’m watching if the U.K. central bank sounds more dovish this time.